Which Statement Is TRUE Regarding the Coase Theorem

question 132

Multiple Choice

Which statement is TRUE regarding the Coase theorem?

• A) The final distribution of income is independent of the initial distribution of property rights.
• B) The Coase theorem applies only to negative externalities.
• C) If transaction costs are negligible, the outcome is efficient, regardless of the distribution of property rights.
• D) There are few real-world applications of the Coase theorem.

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